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AO 20-001

In re: SMALL BUSINESS REORGANIZATION ACT AMENDED ADMINISTRATIVE ORDER NO. 20-001 / AMENDED INTERIM ORDER ADOPTING RULES FOR SMALL BUSINESS REORGANIZATION ACT OF 2019

On August 23, 2019, the Small Business Reorganization Act of 2019 (“SBRA”) became law. SBRA amended Title 11 of the United States Code (the “Bankruptcy Code”) to create a new Subchapter V to Chapter 11 for reorganization of small business debtors. SBRA went into effect on February 19, 2020. SBRA made substantive and procedural changes to the Bankruptcy Code, thus requiring changes to the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”). The effective date of SBRA occurred long before the Bankruptcy Rules could be amended under the three-year process required by the Rules Enabling Act. Accordingly, the Advisory Committee on Bankruptcy Rules drafted, published for comment, and subsequently approved interim Bankruptcy Rules 1007 and 1020 (the “Interim Rules”) for distribution to the courts. The Committee on Rules of Practice and Procedure approved the Interim Rules, and the Judicial 2 Conference authorized distribution of the Interim Rules to courts for adoption locally to facilitate uniform implementation of the changes mandated by SBRA. The Bankruptcy Threshold Adjustment and Technical Corrections Act (“BTATC”) was signed into law on June 21, 2022. BTATC temporarily increased the debt threshold in Subchapter V and Chapter 13 cases and made technical corrections to the Bankruptcy Administration Improvement Act of 2020. The Court adopted Interim Rule 1020, which included provisions of BTATC. Certain provisions of BTATC expired effective June 21, 2024, including the applicability of Interim Rule 1020. For the reasons stated, it is ORDERED: 1. This order is amended to exclude the adoption of Interim Rule 1020 effective June 21, 2024. 2. Pursuant to 28 U.S.C. § 2071, Rule 83 of the Federal Rules of Civil Procedure, and Rule 9029 of the Federal Rules of Bankruptcy Procedure, the attached Interim Rule 1007 remains adopted in its entirety without change. For cases and proceedings not governed by SBRA, the Federal Rules of 3 Bankruptcy Procedure and the Local Rules of this Court, other than Interim Rule 1007, shall apply. 3. For the sake of clarity, the attachment is a "redline" version highlighting the amendment of Interim Rule 1007. Interim Rule 1007 shall remain in effect until further order of the Court.

DONE and ORDERED on July 8, 2024. KAREN K. SPECIE Chief United States Bankruptcy Judge

File: 
AttachmentSize
PDF icon POSTED_AO20-001_AMENDEDreSBRA.pdf603.72 KB
Judge: 
Specie
Order Date: 
Monday, January 27, 2020
Type: 
Active Administrative Orders